Innovation and Collaboration Driving Advances in Life Sciences: How These Companies Plan to Expand in 2019

Advances in life sciences and medicine are inseparable from breakthroughs in forward-looking technologies. Today, the rapid development of cutting-edge scientific and technological fields such as big data, artificial intelligence, and cloud computing is unleashing transformative waves across numerous sectors, while also bringing unprecedented opportunities to life sciences and medicine.

VCBeat (WeChat: vcbeat) has learned that the Chengdu Forum on New Advances in Life Medicine (hereinafter referred to as the “Forum”), hosted by the Chengdu Institute of New Economy Development, Merck China, and PwC China, and co-organized by the Wenjiang District Bureau of New Economy and Science & Technology of Chengdu and VCBeat (WeChat: vcbeat), was held in Wenjiang on December 13. In addition to representatives from the organizing institutions, attendees included Zhou Wei, General Manager of Sichuan KingMed Diagnostics; Zhang Xiaodong, Senior Biological Director of the New Drug Project Center at HitGen (Chengdu); Hao Xiaoliang, Deputy General Manager of CiiTECH; and representatives from other new economy enterprises.

The forum, themed “Innovation, Change, and Coopetition,” focused on new advances in life sciences and discussed topics such as how frontier technologies are driving the innovative development of biotechnology, as well as technological transformation and innovation against the backdrop of China’s new healthcare reforms.

Non-communicable diseases (NCDs) are now the leading cause of death globally. Experts predict that cancer will become the primary cause of death and the main obstacle to gains in life expectancy for populations in every country worldwide during the 21st century. While China’s cancer incidence rate is on par with the global average, its cancer prognosis remains relatively poor, underscoring an urgent need to address this issue through comprehensive, multi-faceted strategies.

Cancer treatment requires an integrated approach, encompassing imaging, diagnostic monitoring, and definitive therapy. Beyond detecting lesions and confirming diagnoses, imaging provides critical information to guide clinicians in selecting appropriate treatment regimens. Diagnostic tests help physicians determine the presence of specific diseases, with up to 70% of test results informing medical decision-making. Definitive treatment often involves pharmacological intervention. Throughout this entire process, in vitro diagnostics (IVD) play a continuous and essential role.

Guo Mingfei, Director of Merck Life Science’s Diagnostics Business in China, presented on the theme “Frontier Technologies Driving Innovative Development in Biotechnology,” introducing Merck Group’s innovations in medical diagnostics. He stated, “Merck focuses on the development of the entire industry chain—from research to production and application—in the fields of gene editing, food safety, and biotechnology.”

The development of the industrial chain relies not only on the efforts of individual enterprises but also on collaboration among them.

Hao Xiaoliang of Xishi Yigou stated that the company is dedicated to AI-based medical image recognition and has also conducted research on handheld ultrasound devices. Through its collaboration with West China Hospital, Hao discovered that the integration of AI can indeed assist physicians, noting that imaging and diagnostic testing constitute the first step in cancer diagnosis.

At the conference, Dr. Zhang Xiaodong, Senior Director of Biology at HitGen’s New Drug Project Center, introduced non-nucleotide small-molecule STING agonists, with the aim of further advancing new developments in the treatment of solid tumors. He noted that HitGen’s series of compounds are non-nucleotide small molecules and demonstrated favorable tumor-inhibitory effects in preliminary tumor xenograft experiments. Dr. Zhang stated that, in the field of oncology, many cancers are associated with specific mutations, which have a very close correlation with diagnostic and therapeutic services provided by KingMed Diagnostics.

Zhou Wei, General Manager of Sichuan KingMed Diagnostics Laboratory Center, stated that as an independent third-party laboratory, KingMed’s objective in offering tumor IVD (in vitro diagnostics) is ultimately to serve its clients. By partnering with Leadgene to provide pharmacotherapy following testing, KingMed can deliver integrated services to clients, which will not only enhance cohesion but also create greater value for them. Zhou Wei noted, “Leveraging KingMed’s service network, along with cold-chain logistics and information technology, we can deliver test results by the day after sampling, providing efficient services to medical institutions in Chengdu and throughout Sichuan Province.”

Collaboration aims to achieve win-win outcomes. As healthcare reforms deepen, life sciences and digital technologies are exerting a profound impact on the medical sector. While technological advancements accelerate the efficiency of healthcare resource integration, the inherent seriousness of medical practice must also be taken into account. Enterprises face significant challenges and need to devote themselves to careful research and development. In which directions will these companies develop in 2019?

Guo Mingfei stated that for Merck, 2019 would see continued expansion of collaboration, increased investment in the in vitro diagnostics (IVD) sector, and greater allocation of personnel and capacity building. Having just established a new development center in 2018, Merck will subsequently focus on customer value to jointly explore additional revenue streams and identify more business opportunities.

Zhang Xiaodong stated that Lead Pharma is currently engaged in new drug development projects, aiming to reduce drug prices to the lowest possible level by 2019 so that more people can afford them, while also advancing new initiatives.

Zhou Wei stated that KingMed would pursue two directions in 2019: on one hand, it would expand into the primary care sector, which has greater demand; on the other hand, it would continue to explore the field of infertility.

Hao Xiaoliang stated that in 2019, Xishi Yigou would complete the final step in its gastrointestinal tract initiatives, while also continuing to explore the field of handheld ultrasound.

“Yin Chuang Hui” is a series of events operated by the New Economy Enterprise Club, primarily aimed at linking top-tier domestic and international resources to provide targeted new perspectives for corporate development, identify potential partners, and uncover application scenarios. To date, “Yin Chuang Hui” has connected Chengdu’s new economy enterprises with leading investment institutions such as Morgan Stanley, Fortune Capital, and CDH Investments, as well as professional service firms including BCG, Monitor Deloitte, and our partner today, PwC. Furthermore, in November of this year, during the Sichuan-Hong Kong Exchange Week, it organized over 20 high-quality new economy enterprises from Chengdu to visit Hong Kong for exchanges and joint roadshows. In addition, leveraging its profound insights and cutting-edge technologies in artificial intelligence and big data, the Research Institute assists companies in identifying strategic positioning within niche industries and co-developing industry-specific solutions.

PwC established its Innovation Center in 2017, bringing together stakeholders across the innovation ecosystem to foster collaboration and resource sharing among all segments, thereby jointly driving innovations in technologies, products, and business models with significant impact. Xu Wen, Western China Managing Partner for Tax and Business Consulting at PwC China, introduced “PwC’s Innovation Power” by stating that the PwC China Innovation Center is also committed to strengthening connectivity between large domestic and international enterprises and breakthrough-oriented innovative SMEs, enabling capital and technology sharing to unlock greater potential for entrepreneurship and innovation.

In Chengdu, PwC partnered with the Chengdu New Economy Development Institute to launch the “PwC China X Chengdu New Economy Innovation Accelerator,” focusing on the development of startups in sectors such as healthcare in Chengdu. The program provides mentoring to participating companies, addresses challenges encountered during the entrepreneurial process, and supports the growth of businesses in Chengdu.

In recent years, Wenjiang District has closely focused on building an international highland for the health industry and an innovative park city in western China, adhering to a global perspective and international standards to strategically plan its industrial development blueprint from a high starting point. Proactively implementing the national strategy of "Healthy China," it took the lead in proposing the concept of integrated development of "medicine, pharmaceuticals, and healthcare" across the country. Looking to the future, the district deeply grasps five major development trends in the health industry: biotechnology, medical artificial intelligence, value-based healthcare, whole-lifecycle health, and Pharmaceutical Industry 4.0. Following the overall spatial pattern of "South City, North Forest," it plans and constructs the Chengdu Health Industry Functional Zone across its entire area. The southern urban area focuses on developing the medicine, healthcare, and pharmaceutical industries, while the northern forested area prioritizes wellness, elderly care, and modern urban agriculture.

The district has gathered more than 300 leading enterprises and upstream-downstream collaborative partners in the pharmaceutical, medical device, and healthcare sectors, including WuXi AppTec, Kelun Pharmaceutical, Haisco Pharmaceutical, and West China Hospital. It has attracted competitive investments from five major insurance giants, such as China Life Insurance, Taikang Insurance, and China Taiping. The area brings together over 20 higher education institutions and 85 national- and provincial/ministerial-level key laboratories and R&D agencies. It has signed cooperation agreements with 21 renowned domestic and international universities, including Sichuan University, University of Electronic Science and Technology of China, Shanghai Jiao Tong University, and Zhejiang University, to jointly build an innovation ecosystem chain, basically establishing a health industry ecosystem that integrates competitive advantages and highlights application-specific features.